+
RBI Allows Rupee Lending To Bhutan, Nepal And Sri Lanka
ECONOMY & POLICY

RBI Allows Rupee Lending To Bhutan, Nepal And Sri Lanka

The Reserve Bank of India (RBI) has permitted Indian banks and their overseas branches to lend in rupees to residents of Bhutan, Nepal, and Sri Lanka in order to facilitate cross-border trade transactions.

The move, announced on 1 October as part of the monetary policy outcome, forms part of the RBI’s ongoing efforts to ease external trade and payments under amendments to the Foreign Exchange Management Act (FEMA).

In addition, the RBI has extended the repatriation period to three months for foreign currency accounts maintained with banks in India’s International Financial Services Centres (IFSCs). The change is expected to encourage more exporters to open and operate such accounts with IFSC banking units.

Earlier, in January 2025, the central bank had allowed exporters to open foreign currency accounts with banks outside India for realisation of export proceeds, with unutilised balances to be repatriated by the end of the month following the realisation date.

With these measures, the RBI aims to promote internationalisation of the rupee, positioning the domestic currency as a stronger medium for regional trade and settlement.

The Reserve Bank of India (RBI) has permitted Indian banks and their overseas branches to lend in rupees to residents of Bhutan, Nepal, and Sri Lanka in order to facilitate cross-border trade transactions. The move, announced on 1 October as part of the monetary policy outcome, forms part of the RBI’s ongoing efforts to ease external trade and payments under amendments to the Foreign Exchange Management Act (FEMA). In addition, the RBI has extended the repatriation period to three months for foreign currency accounts maintained with banks in India’s International Financial Services Centres (IFSCs). The change is expected to encourage more exporters to open and operate such accounts with IFSC banking units. Earlier, in January 2025, the central bank had allowed exporters to open foreign currency accounts with banks outside India for realisation of export proceeds, with unutilised balances to be repatriated by the end of the month following the realisation date. With these measures, the RBI aims to promote internationalisation of the rupee, positioning the domestic currency as a stronger medium for regional trade and settlement.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Assam Gets Approval For 350,000 PMAY Homes

Assam Chief Minister Himanta Biswa Sarma met Union Agriculture Minister Shivraj Singh Chouhan in New Delhi, where the minister handed an approval document for 310,000 new homes under the Pradhan Mantri Awas Yojana. The chief minister subsequently posted on X expressing gratitude and noting that the minister had formally handed approval for 380,000 homes as well. The release and the social media post contained varying figures, with broader references to 350,000 homes reported in some summaries. The approvals carry central assistance equivalent to Rs 50 billion (bn), corresponding to the five th..

Next Story
Infrastructure Urban

KPIGreen Achieves Highest Energised Capacity of 630+ MW DC

KPI Green Energy energised more than 630 MW DC of capacity in the June to August quarter, marking the highest quarterly addition in the company's history. The capacity was brought online across its Independent Power Producer (IPP) and Engineering, Procurement and Construction (EPC) businesses. The company said the achievement reflected the scale, speed and consistency of its project execution engine. The firm described the quarter as a material operational milestone since its founding. The milestone covers a diversified mix of IPP assets and projects executed under the EPC vertical, spanning u..

Next Story
Infrastructure Energy

Adani Energy Solutions Wins Rs 47 bn Maharashtra Transmission Project

Adani Energy Solutions has won a transmission contract in Maharashtra valued at Rs 47 billion (Rs 47 bn) to evacuate 4,500 megawatt (MW) of renewable and storage power. The company informed exchanges that the project will facilitate pumped storage potential near Satara and strengthen the inter-regional corridor between the Western and Southern grids. The award follows a competitive bidding process and will support renewable energy evacuation to major load centres in the state. The scope includes establishment of a 765/400 kV substation at Satara, construction of a Kolhapur-Satara 765 kV double..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code